Study shows why 60 structured products lost investors money

American-style capital protection barriers largely to blame

David Brenchley
clock • 2 min read

The 60 structured products that have lost investors money in the past ten years overwhelmingly used an American-style capital protection barrier and were linked to alternative indices such as the European or emerging stockmarkets or commodities baskets, according to structuredproductreview.com data.

The website delved into the reasons investors saw negative returns on some structured products between 2010 and 2019, finding that some had been launched pre-financial crisis, meaning the losses stemmed from that event. Three others were as a result of a mid-term re-structuring by the provider to protect against potential counterparty default. However, the main linked reasons were due to the products using an American capital protection barrier, rather than a European one. An American barrier means if the linked index fell below a certain point during the investment period, and is neg...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Why should investors back China in the worldwide robotics race?

Why should investors back China in the worldwide robotics race?

The race to identify Asia's hidden gems

Xin-Yao Ng
clock 19 June 2026 • 5 min read
UK small-caps – down and out or ready for a rope-a-dope?

UK small-caps – down and out or ready for a rope-a-dope?

'Our faith is rooted in our own in-depth research and direct engagement with businesses'

Eustace Santa Barbara
clock 19 June 2026 • 5 min read
US-Iran truce eases inflation picture but markets to experience 'hangover'

US-Iran truce eases inflation picture but markets to experience 'hangover'

Fed and BoE face 'balancing act'

Michael Nelson
clock 15 June 2026 • 3 min read